IDFC FIRST Bank Announces Quarter Results, Records 134% Net Profit Growth
IDFC FIRST Bank announced its audited financial results for the Q4 FY 23, marking its major profit after tax increase at Rs. 2,437 crore, a significant up compared to Rs. 145 crore in FY 22.
It added a strong growth in core operating income, which resulted in quarterly net profit of 134 per cent YOY from Rs. 343 crore in Q4-FY22 to Rs. 803 crore in Q4-FY23.
The banking major further marked its trading gains in Q4-FY23 by Rs 216 crore highlighting its utilisation of Rs 79 crore that increased its provision coverage ratio. Its Net Interest Income (NII) for the year grew 30 per cent YOY, from Rs. 9,706 crore in FY22 to Rs. 12,635 crore in FY23 and NII grew 35 per cent YOY from Rs. 2,669 crore in Q4-FY22 to Rs. 3,597 crore in Q4-FY23.
Subsequently, the fee and other income for the year grew by 54 per cent YOY from Rs. 2,691 crore in FY22 to Rs. 4,142 crore in FY23. A 40 per cent increase in YOY from Rs. 841 crore in Q4-FY22 to Rs. 1,181 crore in Q4-FY23. In all, the retail fees constituted 91 per cent of the overall fees for the quarter Q4-FY23.
Meanwhile, the provisions for the year decreased by 46 per cent YOY from Rs. 3,109 crore in FY22 to Rs 1,665 crore in FY23 and credit cost for FY23 stood at 1.16 per cent against the guidance of 1.5 per cent.
Following this the ROA improved from 0.08 per cent in FY22 to 1.13 per cent in FY23, while the ROE for FY23 improved to 10.95 per cent from 0.75 per cent in FY22.
Commenting on the results, V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said “We have built a strong foundation for the bank with diversified customer deposits and diversified loan book and I am happy to share that the asset quality remains high”.
He said, “On the retail side, the Gross NPA is 1.65 per cent and the net NPA is at 0.55 per cent, against the guidance of Gross NPA of 2.0 per cent and NNPA of less than 1per cent. If we exclude the infrastructure financing book, which is anyway in run-down mode, the Gross NPA and Net NPA would be 1.84% and 0.46% at the overall bank level”.
